The price of bitcoin has behaved in a more specific directional manner for the past week. Within the last seven days, analysis on CoinmarketCap (CMC) has shown that the top cryptocurrency has adopted a range-bound kind of price movement while gaining more market dominance, amid increasing market capitalization. This, however, goes contrary to the conventional usual price instability and extreme volatilities that we are used to.
Bitcoin, as at earlier today, was trading around $6,230 per unit of the cryptocurrency, while hoarding a total market cap of about $114.03 billion.
As against what frequent cryptocurrency market observers, traders, and investors would normally expect, bitcoin was seen vacillating between the $6,000 to $6,700 range within the last seven days without recording any major extremities. Other major cryptocurrencies like Ethereum and Ripple’s XRP however, acted in a quite different way, following the usual order of extreme price volatility.
As of Monday, 23rd of March, bitcoin traded at $6,100 as it moved further to record a local high of around $6,700 as of Wednesday, 25th of March 2020. Numerous range-bound price swings between these narrow extremes were recorded within the next few days as bitcoin later settled close to the $6,100 mark recently, a price at which Bitcoin changed hands for a short period of time before it made way for a short bull run which sent it to its present levels. Throughout this period of time, bitcoin gained more market dominance to touch 65.5%
However, the bitcoin range-bound narrative doesn’t necessarily support a widely believed notion that the cryptocurrency is getting prepared for the much-anticipated block reward halving. In fact, technical analysis from respected analysts and renowned platforms suggest that the king crypto might be headed for a down run presently.
According to analysis, two high moving averages (MAs), the 200-day and 100-day, are beginning to shorten distance once more. This is seen as a clear indication that the possibility of a deeper drawdown from Feb. 13’s high of around $10,500, reflecting sentiment on current global market conditions.
The last time these two MAs crossed was back in November 2019, when prices fell nearly a quarter to a local bottom of around $6,425 from $8,500.